The Association of Power Generation Companies has categorically rejected claims by presidency sources suggesting that N2.8tn represents a newly verified and final settlement of legacy debts owed to electricity generation companies, describing the claim as inaccurate and misleading.
In a statement titled “APGC Position on Misleading Reports Regarding GenCos’ Debt Reconciliation,” issued on Monday in Abuja, the Chief Executive Officer of the association, Joy Ogaji, said the report did not reflect the outcome of any officially concluded reconciliation process and urged those behind the claim to make public the basis of their computation.
“We categorically reject recent media reports suggesting that N2.8tn represents a newly verified and final settlement of GenCos’ legacy debts. The report is completely inaccurate. It is fake news,” Ogaji said.
It was earlier reported on Monday that President Bola Tinubu has approved the payment of N2.8 trillion to power generation companies as the Federal Government’s verified liability for accumulated electricity subsidies dating back to 2010.
The report, quoting highly placed officials in the Presidency and the Federal Ministry of Power with direct knowledge of the negotiations, said the president rejected the N6tn claim submitted by the operators and insisted he will not pay a naira beyond the audited figure.
“The President has approved an amount. The audit has shown that it is N2.8tn, and it has been brought to the President for approval, and the President has approved it. And then he said he is not going to pay one naira more than that. So that is what the Federal Government is accepting as liability,” the source said.
But reacting, the APGC CEO challenged unnamed sources allegedly quoted in the report to openly publish their audit findings.
“Those Presidency sources should come out openly. I dare them. Publish your audit report. Why hide to throw stones? Issue a formal press release explaining how you arrived at that figure.
“There is a clear demonstration of poor understanding of the debt structure and how these obligations accumulated,” she added.
Ogaji explained that the outstanding obligations arose strictly from bilateral commercial agreements executed within the framework of the Nigerian Electricity Supply Industry.
According to her, the quantum of debt is determined through a verifiable process that includes metered megawatts generated by GenCos, energy dispatched to the grid, invoices issued in line with market rules, and settlement reports from the Nigerian Bulk Electricity Trading Plc.
“The outstanding obligations to Generation Companies arose strictly from bilateral commercial agreements executed within the Nigerian Electricity Supply Industry framework. These are not unilateral claims. They are contractual liabilities resulting from power generated, dispatched, and consumed under regulated tariffs. Can the process of obtaining metered MW generated by the GenCons be included here?
“Can the process of obtaining metered MW generated by the GenCons be included here? Any reconciliation or audit of these obligations must be conducted transparently and in accordance with the provisions of those bilateral agreements.
“The energy generated by GenCos is metered and documented. The megawatts generated and dispatched to the grid are captured under established market procedures. These form the basis of invoices rendered under bilateral agreements. So any suggestion that figures are arbitrary is incorrect,” she stated.
She stressed that any reconciliation or audit of the obligations must be conducted transparently and in accordance with the provisions of the contractual agreements governing the market.
“As at December 2025, no further reconciliation meeting had been convened by NBET following the March 2025 tripartite reconciliation exercise,” she disclosed.
Ogaji recalled that in July 2025, after a tripartite reconciliation involving GenCos, NBET, the Ministry of Finance, and the Office of the Special Adviser on Energy, Tinubu approved N4tn in recognition of verified legacy obligations.
“It is on record that after a tripartite reconciliation involving GenCos, NBET, the Ministry of Finance, and the Office of the Special Adviser on Energy, His Excellency approved N4tn in recognition of verified legacy obligations. That commitment was made following due process and formal engagement,” she said.
GenCos Warn Against Revising Reconciled Debt Figures
According to her, GenCos participated in the reconciliation in good faith and subsequently engaged financial institutions, gas suppliers, and investors based on that commitment.
“Financial institutions, gas suppliers, and investors were engaged based on that understanding. Revising figures outside the established reconciliation framework undermines market confidence and contractual sanctity,” Ogaji warned.
She maintained that APGC retains confidence in the President and expects that all further discussions will be conducted transparently and within the framework of the bilateral agreements governing the electricity market.
The APGC CEO further attributed the persistent liquidity crisis in the power sector to structural challenges rather than arbitrary demands by generation companies.
“The President cannot approbate and reprobate on the same issue after a concluded reconciliation process. This can be excluded for political correctness. GenCos participated in good faith. Financial institutions, gas suppliers, and investors were engaged based on that commitment. Revising figures outside the established reconciliation framework undermines market confidence and contractual sanctity.
“GenCos participated in good faith. Financial institutions, gas suppliers, and investors were engaged based on that commitment. Revising figures outside the established reconciliation framework undermines market confidence and contractual sanctity. The liquidity crisis in the sector is rooted in: Tariff shortfalls under regulated pricing, Market settlement deficits, Foreign exchange exposure, and accumulated unpaid invoices. These are structural market realities, not arbitrary demands,” she said.
Nigeria’s power sector has continued to grapple with mounting debts owed to generation companies since the 2013 privatisation of the industry.
GenCos have repeatedly warned that delayed payments from NBET and distribution companies have constrained their ability to meet obligations to gas suppliers and service lenders, raising concerns over generation sustainability.
Liquidity shortfalls in the Nigerian Electricity Supply Industry have ballooned over the years due to non-cost-reflective tariffs, foreign exchange volatility, and chronic settlement gaps.
Against this backdrop, Ogaji insisted that any effort to alter reconciled figures without formal engagement risks eroding investor confidence at a time when the sector urgently requires capital injection and stability.
“APGC maintains confidence in the President and in the integrity of the July 2025 engagement. We expect that all further discussions will be conducted transparently and within the framework of the bilateral agreements governing the market,” she added. This article was originally published on Punchng.com and has been adapted for further clarity.
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